2020 Licence Restructure Q&A
If you’re a Motorsport UK member, your licence renewal pack has been dispatched, and if it has not already arrived, you should receive it in the next couple of days. The pack contains details of our licence restructure, which has simplified the types of licence available. Your personalised letter will explain precisely which type of licence you will need for 2020.
The pack also contains details of our new Investment Strategy, which has been developed to safeguard the future of the sport. The strategy addresses a gradual and consistent decline in licence numbers that has derived from a number of external factors, and a long-standing lack of investment in promoting the sport and supporting clubs to grow their membership. We needed to create a new economic model for the sport that will see new revenue streams being developed, and in turn easing the burden on the competitor. We also sought to unlock barriers to entry and causes of friction in the sport, as well as hidden costs, such as the medicals for 45 to 59 year olds.
In addition, the insurance of our sport is absolutely paramount, and yet the cost of insurance continues to escalate as insurers place a greater cost on riskier sports. The good news is that we have negotiated a significant increase in our public liability insurance to £100m.
Also included is a member benefits leaflet, demonstrating the many ways in which you can reduce your motorsport costs via an even more extensive array of member discounts for 2020. This is the first tangible element of creating new revenue streams for the sport – the scheme offsets the costs of competition, and in turn mitigates the increases in licences for 2020.
If you have not received your renewal pack by 25 November, please don’t hesitate to contact our membership team at email@example.com or call 01753 765050 – they’ll be happy to help.
Frequently asked questions
What is Motorsport UK trying to achieve with these changes, and why now?
- Above all, we want to inspire and enable more people to participate in our sport in a safe, fair, fun, inclusive and progressive environment.
- The investment strategy and restructuring of permits and licences aims to create a sustainable future for our sport and address a number of fundamental risks which are causing a decline in membership numbers. This includes a lack of investment in grass roots motorsport, to help clubs grow their membership.
Have Motorsport UK members been consulted on this?
- We’ve done a lot of surveying and gathering feedback from clubs and members over the last year to understand where we should focus our efforts and investments.
- The governance structure of the sport has meant that the representatives of the clubs, via the Regional Associations, have been involved all along the way
- The changes are a direct result of the feedback received and everyone’s wish to help ensure a sustainable future for the sport.
What will Motorsport UK be spending licence fee income and other revenue on?
- There will be four key areas of spending, each geared around creating a sustainable future:
- Sport Promotion – especially the more affordable grass roots disciplines
- Club and member development – helping clubs to engage with new audiences and promote events
- Education and training – for competitors and officials, on-line tools and seminars
- Sport and product innovation – creating the future formats of technology and events
Why are licence fees being adjusted?
- Motorsport UK is a not-for-profit membership organisation, and has no objective to make a profit per se, but it aims to generate funds that can be reinvested into the sport.
- This is part of a wider investment strategy to create a sustainable future for motorsport, which we cannot deliver with the current economic model.
- We are currently facing diminishing licence numbers and need to make changes to promote the sport better to encourage participation at grass roots level.
- The new economic model will produce a fairer system – while most licence fees have received an uplift, some are being removed altogether, for example Officials, to recognize their important contribution to the sport. And Clubman’s grass roots licences are now free of charge.
What new financial benefits are there for members in 2020?
- We always listen to the feedback we receive from members and look to develop commercial partnerships and benefits that will help everyone in the sport. Thus, in 2020, we are extending member benefits to include reduced cost fuel, reduced cost tyres, free high street eye tests, discounts at Halfords, reduced insurance premiums and many more money saving deals. You could now save hundreds of pounds a year on your motoring and motorsport costs with our member benefits scheme.
- In addition, if you are racing and over 45 you no longer need to have an annual medical until you are 60, thus saving you on average £100 per year.
- Your personal accident insurance cover has improved substantially to offer you peace of mind, and everyone in the sport is now covered by a £100m public liability provision.
- And if you enjoy track days, then up to five days a year are covered for personal accident insurance included with your licence, and that is valued at over £500.
How do I know what type of licence to get?
- Chart 26 in the 2020 yearbook outlines the new minimum licence requirement for different types of event – also available here.
Are licence fees paying for the move to Bicester?
- The relocation to Bicester is an entirely separate exercise and has a ring-fenced budget.
- The relocation project is underpinned by the sale of the existing HQ building in Colnbrook.
What are the benefits of having an RS Clubman licence?
- RS Clubman licence is free of charge and members will receive the full member benefits package including reduced cost fuel, reduced cost tyres, free eye tests, discounts at Halfords, reduced insurance premiums and many more money saving deals.
- Members will receive comprehensive Motorsport UK personal accident insurance for the Motorsport UK permitted events in which they take part.
How does the new RS Clubman licence benefit the sport?
- The RS Clubman licence will not only allow us to understand who is competing with our insurance – which is a requirement – but it will allow us to engage with grass roots competitors and encourage further participation, and to create a closer relationship with the sport.
- Given the challenges of bringing new people into the sport, the entry level RS Clubman removes the barrier of initial cost. The economic model has shifted so that these competitors contribute to the sport through their entry fees, that include the permit fee, thus they pay-as-they-play.
Why do all officials get free licences?
- Motorsport relies heavily on a volunteer workforce of nearly 15,000, whether it is the marshals, stewards, scrutineers, clerks or timekeepers – they make it all possible. It does not seem fair that they provide this service and yet we charge for a licence.
Will my licence fee change again next year?
- Beyond 2020 we have no plans to adjust the prices of licences, outside of minimal inflationary increases.
- The change this year is intended as a one-off adjustment to reflect the new investment strategy that will allow Motorsport UK to deliver its ongoing strategic objectives as motorsport’s governing body.
What more do I get for my new licence fee?
- First and foremost you are contributing to the long term future of motorsport in this country – helping to invest in promotion, club development, education and training as well as important innovations in the sport.
- This is the principal reason for the price changes, and Motorsport UK does not receive central government funding or lottery grants like many other sports’ governing bodies.
- But new for 2020 there are a host of features that will benefit you directly:
- Member benefits including reduced cost fuel, reduced cost tyres, free eye tests, discounts at Halfords, reduced insurance premiums and many more money saving deals
- If you are racing and over 45 you will save on the need to have an annual medical until you are 60
- Your insurance cover has improved substantially, and everyone in the sport is now covered by a £100m public liability provision
- And if you like track days, then up to five a year are covered for personal accident insurance included in your licence